Sound PFM supports aggregate control, prioritization, accountability and efficiency in the management of public resources and delivery of services, which are critical to the achievement of public policy objectives.

In addition, sound public financial management systems are fundamental to the appropriate use and effectiveness of donor assistance since aid is increasingly provided through modalities that rely on well-functioning systems for budget development, execution and control.

PFM Principles
Five principles have emerged that reflect good practice in PFM work. The principles, reflected throughout the following guidance, are:

• PFM work should facilitate and encourage country and county   leadership in setting/managing the PFM reform strategy and action plan.
• PFM diagnostic work should be conducted in an integrated and coordinated manner, drawing upon the distinct competencies of the PFM country team and other donors, with the timing and scope determined largely by country needs.
• PFM work should be weighted toward supporting PFM reform implementation reforms and capacity building rather than detailed diagnostic analysis, should add value to Government budget and reform processes, and should be aligned with Government decision-making cycles.
• PFM reform work should be framed within a multi-year horizon, sequenced around agreed priorities, and built upon a coordinated donor approach.
• PFM work should be linked to a robust monitoring and evaluation framework that clearly articulates the gains in PFM system performance that are sought or achieved.